Buying foreclose property in the US from Australia

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mister83
Posts: 3
Joined: Sat Feb 04, 2012 6:59 pm

Buying foreclose property in the US from Australia

Post by mister83 »

Hi Guys,

I have a few questions relating to this topic.

I need input from the people who has experience in investing in the US/Florida State property market or foreclose properties (Townhouse) from Australia.

I would appreciate if you could provide some insight or your thoughts on it.

- Did you find the process of buying foreclose properties in the US difficult/complex?
- What paper work is involved?
- What are the associated paper work costs? Stamp duty, taxes, insurance, etc?
- Did you seek help from any local agents? If yes, could please tell which ones?
- Did you appointment a Buyer’s agent or did you contact the seller’s agent directly?
- Did the agents provide any help/assistance with paper work to an international buyer?
- Time lapsed between the first contact with the seller’s agent to getting the keys in your hands?
- How did you manage the payment for the property from overseas – did you need to involve the ATO/IRS? Wire transfer?
- Was communication over the phone/emails sufficient or did you have documents courier back and forth or even personally visit to close the deal? I understand visiting the property for inspection but once you have decided on the property was any more visits needed?
- Assuming you had purchased the property as an investment, did you involve agent for managing tenants?
- Anything else that you think I should know of?
- I am assuming that paying for the property in all cash will be far more easier then getting a mortgage with a US Bank but am I even eligible for US mortgage as a Australian resident?

A bit of a background on my current situation – I am an Australian citizen. I have previously visited US on the visa waiver program. I have a bank account with an American bank. I have also applied for ITIN with the IRS.

Thanks.

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adamsj
Posts: 50
Joined: Wed Apr 07, 2010 12:18 pm

Re: Buying foreclose property in the US from Australia

Post by adamsj »

Hi mister83,

I have a US/Australian dual citizen friend who borrowed money from US banks at ridiculously low interest rates to buy foreclosed homes in US for ridiculously low prices. However, sorry to tell you but the option of borrowing from US banks to finance a US property purchase is not an option for non-US citizens as far as I know.

Why not borrow from Australian banks? The interest rates on home loans are low so it's a good time to borrow. Did you get in touch with any US real estate agents online to see what sort of property would be reasonable to purchase? There are some horror stories out there about houses in the inner-ghetto but I doubt you would want to be a slumlord.

I would say do some research and consult with a mortgage broker in Australia to get you a good deal on your investment property loan.

Regards,

J

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Buying foreclose property in the US from Australia

Post by Otto Dargan »

Hi Mister,

It's really tough for Aussies to buy a property in the US as we are seen as a much higher risk. Typically if you don't have a credit score (Over there it is called a FICO Score) then there isn't much hope unless you have a very large deposit, are buying in a good area and have an excellent income.

Friends of mine who are Australian Expats living in the USA have trouble just getting a credit card! Many of them work in silicon valley and have great jobs yet they just don't meet the lending criteria of US lenders as they are a foreign citizen.

We can lend around 50% of the value of some american properties using an international lender that will accept properties in the US as security. Note that foreclosed properties in Florida may be seen as a high risk and so may be declined.

If you have a property in Australia that you can use as security for an equity release then this is the best bet.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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drewwhite
Posts: 2
Joined: Thu Mar 29, 2012 4:24 pm

Re: Buying foreclose property in the US from Australia

Post by drewwhite »

Well, according to most of the polls indicate the average American already does or aspires to own their own home. Perhaps buying a new house can be daunting. And the average discount on a foreclosure is about 20 percent, according to the Washington Post. As with basically everything regarding housing, however, savings or losses come down to the economy of scale, which means the individual house itself and the surrounding area matters. Thus, the actual discount depends on where the interested buyer resides, among other things. A lot of people want to own a home. Given, the industry is volatile and it really is not as good an investment as one might thank. One can save money by purchasing a foreclosed home, but inspect it cautiously before buying.

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